Ralph Robbins
Certified Financial Planner
Ralph S. Robbins, CFP©, is a licensed Certified Financial Planning Practitioner and an Accredited VA Claims Agent specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.
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Question
Short-term care covered by Medicare has ended and Medicaid hasn't been approved, but my father still needs Ski...
Caution! If your father has resources above Medicaid limits (assets and/or income) his application will be denied! Before you approach the... Caution! If your father has resources above Medicaid limits (assets and/or income) his application will be denied! Before you approach the SNF to handle the application find out what the Medicaid limits are in your state (virtually all states have an asset limit of $2,000 with income limits varying). The SNF will want private pay to any degree they can receive it and will NOT counsel you on preserving assets for your father's benefit which CAN and SHOULD be done since Medicaid allows only $35 per month in personal needs allowance and, moreover, if Dad is discharged to the community you are going to need every penny. If your father is indeed over the limit(s) consult a professional immediately. Keep in mind that even if the application is filed the last day of the month, benefits will be retroactive to the first of the month. Do not feel pressured by the SNF to do anything until you figure this out. Most importantly, DO NOT sign anything that will make you financially responsible. Good luck! see more
Question
My brother has Power Of Attorney and I don't think he is looking out for mom. He's not honest or sincere. How...
You cannot challenge a POA without filing for guardianship. Only the person granting POA can revoke it.
Question
We're paying for home health care out of pocket, are these expenses legally tax deductible?
If you are paying aides "off the books" then legitimately deducting the expenses may be problematic.
Question
Can I buy my parents home and give them living estate, so they don't have to sell it when they go to a nursin...
The answer will be state specific as different states have different rules (most, for instance, do not recognize the "enhanced life... The answer will be state specific as different states have different rules (most, for instance, do not recognize the "enhanced life estate deed" and some do not provide homestead property tax exemptions for property held in trust).
The house as an exempt asset with respect to Medicaid qualification has nothing to do with disposition of the property at the demise of the Medicaid recipient.
What state are you in? see more
The house as an exempt asset with respect to Medicaid qualification has nothing to do with disposition of the property at the demise of the Medicaid recipient.
What state are you in? see more
Question
Mom has incurable cancer and is moving in with me. Should we leave the mobile home she owns in her name or tra...
If there is no plan to apply for public benefits then by all means go ahead and transfer now....or even better, sell it (unless, of course,... If there is no plan to apply for public benefits then by all means go ahead and transfer now....or even better, sell it (unless, of course, you plan on keeping it as a vacation spot!).
If you will be applying for benefits I would recommend against transferring now as that would considered an uncompensated transfer. It is true that at her demise the mobile home will be a part of her probate assets which will be a problem if it is in another state.
It is difficult to avoid probate with a mobile home because it is not real property and cannot be titled in the name of a trust.
In any event, the best course of action is to dump the thing and concentrate on taking care of mom. see more
If you will be applying for benefits I would recommend against transferring now as that would considered an uncompensated transfer. It is true that at her demise the mobile home will be a part of her probate assets which will be a problem if it is in another state.
It is difficult to avoid probate with a mobile home because it is not real property and cannot be titled in the name of a trust.
In any event, the best course of action is to dump the thing and concentrate on taking care of mom. see more
Question
If I pay off my parent's mortgage can I claim it on my income tax?
Here are my concerns: 1. All withdrawals from your 401k are going to be income taxable to you so you will suffer some unnecessary... Here are my concerns:
1. All withdrawals from your 401k are going to be income taxable to you so you will suffer some unnecessary diminution of funds due to excess taxation (the withdrawal of a substantial sum will put you in a higher tax bracket making it even worse). And, you will not be getting a corresponding tax deduction (as noted).
2. What is the current value of the home? Most properties have fallen in value BELOW any possible resale price and it is unlikely home values will rise to any appreciable degree for the next 10 years or so. Is the house worth less than the balance on the mortgage?
3. The house is your residence, but it is their home. Will you be put on the deed? How will your interest be secured. If you do put money in the property make very sure you document everything! If the folks need to apply for Medicaid some day you will have to PROVE your contribution to prohibit Medicaid from considering the home all theirs.
4. If you needed to get money back out of the house it will cost money to do so.
5. I would suggest budgeting monthly withdrawals from your 401k to help pay the mortgage if there are problems now. Alternatively, you might want to consider a calculation using making a few extra payments a year. This can drop the term of a 30 year mortgage to about 18. It will also drop the term of a 15 year note by some degree. see more
1. All withdrawals from your 401k are going to be income taxable to you so you will suffer some unnecessary diminution of funds due to excess taxation (the withdrawal of a substantial sum will put you in a higher tax bracket making it even worse). And, you will not be getting a corresponding tax deduction (as noted).
2. What is the current value of the home? Most properties have fallen in value BELOW any possible resale price and it is unlikely home values will rise to any appreciable degree for the next 10 years or so. Is the house worth less than the balance on the mortgage?
3. The house is your residence, but it is their home. Will you be put on the deed? How will your interest be secured. If you do put money in the property make very sure you document everything! If the folks need to apply for Medicaid some day you will have to PROVE your contribution to prohibit Medicaid from considering the home all theirs.
4. If you needed to get money back out of the house it will cost money to do so.
5. I would suggest budgeting monthly withdrawals from your 401k to help pay the mortgage if there are problems now. Alternatively, you might want to consider a calculation using making a few extra payments a year. This can drop the term of a 30 year mortgage to about 18. It will also drop the term of a 15 year note by some degree. see more
Question
What are my long-term care insurance payment options?
Two good points, Crowe. Auto-withdrawal for payments will (hopefully) prevent the policy from lapsing unintentionally. Most companies... Two good points, Crowe.
Auto-withdrawal for payments will (hopefully) prevent the policy from lapsing unintentionally. Most companies also offer what is known as "third party notification" in the event premium is past due.
The policy provision you are speaking of is called "Waiver of Premium" and is typical of most policies although some are offered without it.
Buyer beware! see more
Auto-withdrawal for payments will (hopefully) prevent the policy from lapsing unintentionally. Most companies also offer what is known as "third party notification" in the event premium is past due.
The policy provision you are speaking of is called "Waiver of Premium" and is typical of most policies although some are offered without it.
Buyer beware! see more
Question
What are my long-term care insurance payment options?
I had also wanted to add... You can "stabilize" your premium by contracting for a limited premium term (if you can manage it). ... I had also wanted to add...
You can "stabilize" your premium by contracting for a limited premium term (if you can manage it). Some carriers offer a "single-pay" or "ten-pay" option. By contracting in this manner, your premium will be fixed and not subject to increase. see more
You can "stabilize" your premium by contracting for a limited premium term (if you can manage it). Some carriers offer a "single-pay" or "ten-pay" option. By contracting in this manner, your premium will be fixed and not subject to increase. see more
Question
What are my long-term care insurance payment options?
The problem with long-term care insurance is that it is very expensive. I recommend that one not spend more than 6% of disposable income... The problem with long-term care insurance is that it is very expensive. I recommend that one not spend more than 6% of disposable income on long-term care insurance.
The issue is further complicated by the fact that long-term care insurance companies have not been able to keep premiums to existing policyholders stable over the past 20 years. (John Hancock, one of the preeminent carriers, just announced a 40% rate increase to most of its existing policyholders.)
This means that what you initially contract for in terms of benefits and premiums will not likely be what exists at claim time many years down the road.
If you are going to purchase, consider carefully benefit vs. premium. Don't over-insure.
Lastly, DO NOT PURCHASE ANYTHING OTHER THAN A "PARTNERSHIP" POLICY!
Partnership policies will protect your assets and allow you to qualify for Medicaid after policy benefits are exhausted without having to spend down. see more
The issue is further complicated by the fact that long-term care insurance companies have not been able to keep premiums to existing policyholders stable over the past 20 years. (John Hancock, one of the preeminent carriers, just announced a 40% rate increase to most of its existing policyholders.)
This means that what you initially contract for in terms of benefits and premiums will not likely be what exists at claim time many years down the road.
If you are going to purchase, consider carefully benefit vs. premium. Don't over-insure.
Lastly, DO NOT PURCHASE ANYTHING OTHER THAN A "PARTNERSHIP" POLICY!
Partnership policies will protect your assets and allow you to qualify for Medicaid after policy benefits are exhausted without having to spend down. see more
Question
If I pay off my parent's mortgage can I claim it on my income tax?
No you cannot. What are you trying to accomplish?
Question
My auntie is having money stolen from her by her neighbors. What should we do?
Call the police or the equivalent of Adult Protective Services in your state.
Question
I'm mom's POA. The date on the papers is 2002. She was diagnosed last week with Alzheimer's. Should I ask her...
With respect to some of the comments made... A power of attorney may be one of two types: A Durable Power of Attorney or a Springing... With respect to some of the comments made...
A power of attorney may be one of two types: A Durable Power of Attorney or a Springing Durable Power of Attorney.
A Durable Power of Attorney is effective upon proper execution. A Springing Durable Power of Attorney "springs" into play upon a specified event; usually the disability or incompetency of the Principal.
It is in the later case where documentation as to competency may be required from a physician (or two depending upon the document).
The power of attorney and the health care surrogate (aka "health care proxy" or "durable power of attorney for health care") are the two most crucial documents to have when managing an elder's affairs. They should be updated every few years as long as the Principal has competency.
Once an elder no longer has competency they cannot execute any legal document whatsoever. It is too late to create POA's, wills, trusts, etc., at this point.
It is rare for properly executed documents in proper for to not be recognized by financial and other institutions. It is a good idea to have prepared along with the Power of Attorney a revocation document of prior POA's. Some institutions will require the attorney-in-fact (the one acting on behalf of the elder) under the authority of the POA) to complete an affidavit attesting to their status as a lawful POA.
Especially important are the provisions contained within the POA. Documents found on-line or provided by a bank, for instance, may not provide the attorney-in-fact the proper specificity or, for that matter, latitude, to handle all financial and contractual affairs including the ability to create/terminate trusts or other actions that may be required to apply for Medicaid and other public benefits.
I had a client recently who downloaded forms from a well known document site. Not a bad document, but when he printed it out there was no provision for a notary and he was, therefore, unaware that notarization was required. He tried using the document and of course found out it was inadequate. The delay cost him a month of Medicaid benefits. see more
A power of attorney may be one of two types: A Durable Power of Attorney or a Springing Durable Power of Attorney.
A Durable Power of Attorney is effective upon proper execution. A Springing Durable Power of Attorney "springs" into play upon a specified event; usually the disability or incompetency of the Principal.
It is in the later case where documentation as to competency may be required from a physician (or two depending upon the document).
The power of attorney and the health care surrogate (aka "health care proxy" or "durable power of attorney for health care") are the two most crucial documents to have when managing an elder's affairs. They should be updated every few years as long as the Principal has competency.
Once an elder no longer has competency they cannot execute any legal document whatsoever. It is too late to create POA's, wills, trusts, etc., at this point.
It is rare for properly executed documents in proper for to not be recognized by financial and other institutions. It is a good idea to have prepared along with the Power of Attorney a revocation document of prior POA's. Some institutions will require the attorney-in-fact (the one acting on behalf of the elder) under the authority of the POA) to complete an affidavit attesting to their status as a lawful POA.
Especially important are the provisions contained within the POA. Documents found on-line or provided by a bank, for instance, may not provide the attorney-in-fact the proper specificity or, for that matter, latitude, to handle all financial and contractual affairs including the ability to create/terminate trusts or other actions that may be required to apply for Medicaid and other public benefits.
I had a client recently who downloaded forms from a well known document site. Not a bad document, but when he printed it out there was no provision for a notary and he was, therefore, unaware that notarization was required. He tried using the document and of course found out it was inadequate. The delay cost him a month of Medicaid benefits. see more
Question
Is a nursing home the right choice?
Try all avenues but to avoid any potential disruption at the nursing home I would suggest investigating hospice programs not affiliated... Try all avenues but to avoid any potential disruption at the nursing home I would suggest investigating hospice programs not affiliated with the nursing home first...just to get an idea of the options that are available. see more
Question
Is a nursing home the right choice?
I totally understand the feelings you are experiencing. It is soooo hard to watch your loved one go through the difficulties of the aging... I totally understand the feelings you are experiencing. It is soooo hard to watch your loved one go through the difficulties of the aging process.
Some nursing homes can be an entirely appropriate venue for some and unfortunately, as you are experiencing, the absolute worse for others.
I have a suggestion. Here in Florida, hospice organizations have become very aggressive in pursing new patients. Hospice is not just about imminent death anymore. I have, the past 12 months, witnessed hospice take all kinds of cases I never would have expected them to in the past. "Palliative Care" is the new buzzword in the field and fortunately for many, the term covers a broad spectrum of situations.
Call and check out a few in your area. Ask them to do an assessment of her. Some are hospital based and she will get much, much better care. Others are free standing, beautifully done, and of course, she will get much better care there as well.
She really is to ill for assisted living and it seems home is simply not an option. Hospice might be your best bet. see more
Some nursing homes can be an entirely appropriate venue for some and unfortunately, as you are experiencing, the absolute worse for others.
I have a suggestion. Here in Florida, hospice organizations have become very aggressive in pursing new patients. Hospice is not just about imminent death anymore. I have, the past 12 months, witnessed hospice take all kinds of cases I never would have expected them to in the past. "Palliative Care" is the new buzzword in the field and fortunately for many, the term covers a broad spectrum of situations.
Call and check out a few in your area. Ask them to do an assessment of her. Some are hospital based and she will get much, much better care. Others are free standing, beautifully done, and of course, she will get much better care there as well.
She really is to ill for assisted living and it seems home is simply not an option. Hospice might be your best bet. see more
Question
I am caring for my Mom (Dementia) thus can't work outside of my home. Will Medicare/Medicaid pay me for being...
That will depend on whether your state participates in what is typically known as a "Cash and Carry" Medicaid Waiver program (the... That will depend on whether your state participates in what is typically known as a "Cash and Carry" Medicaid Waiver program (the program may have a different name in your state). This program allows Medicaid beneficiaries greater control over their benefits including the ability to pay family members for care.
To see if your state participates, visit here:
http://www.cashandcounseling.org/about/participating_states/
If your mother was married to an eligible veteran at his demise she may be eligible for a VA Aid and Attendance Improved Pension of up to $1,057 per month which could be used as compensation to you. If this benefit applies search this site for more information or to learn more about this benefit directly from the VA, visit here: http://www.vba.va.gov/bln/21/pension/ see more
To see if your state participates, visit here:
http://www.cashandcounseling.org/about/participating_states/
If your mother was married to an eligible veteran at his demise she may be eligible for a VA Aid and Attendance Improved Pension of up to $1,057 per month which could be used as compensation to you. If this benefit applies search this site for more information or to learn more about this benefit directly from the VA, visit here: http://www.vba.va.gov/bln/21/pension/ see more
Question
Are there guidelines for making a caregiver agreement?
Some states (or districts within states) will require that you have quotes in writing from similar professionals who offer similar services... Some states (or districts within states) will require that you have quotes in writing from similar professionals who offer similar services to those you are providing.
So, if you are assisting with financial management, medical management, care management, etc. ...in other words services that provide for the health, maintenance, and welfare of your care receiver, you are essentially performing geriatric care management and booking services.
Geriatric Care Managers typically bill between $95 and $125 per hour. Bookkeeping services about $10 to $20 per hour. I generally recommend that my clients not submit contracts where the compensation will be more than $25 per hour. The less the better. Doing the arithmetic with life expectancy, hours per week, and rate of pay should help you get to the number you need. see more
So, if you are assisting with financial management, medical management, care management, etc. ...in other words services that provide for the health, maintenance, and welfare of your care receiver, you are essentially performing geriatric care management and booking services.
Geriatric Care Managers typically bill between $95 and $125 per hour. Bookkeeping services about $10 to $20 per hour. I generally recommend that my clients not submit contracts where the compensation will be more than $25 per hour. The less the better. Doing the arithmetic with life expectancy, hours per week, and rate of pay should help you get to the number you need. see more
Question
Mom with progressive MS, has retirement that is dwindling. Afraid of loosing home and way of life, no one to h...
NOW is the time to speak to a professional about public benefit planning. From my perspective, the absolute WORSE thing you can do is... NOW is the time to speak to a professional about public benefit planning. From my perspective, the absolute WORSE thing you can do is continue to spend your mother's money down without understanding the alternatives.
The fact is, there are tools and techniques, perfectly legal and viable, that will allow your mother to, in essence, "set aside" funds for her own health, maintenance, and welfare and still be eligible for Medicaid benefits.
If you wait, and spend down her assets, you will be hard pressed to find the additional funds to pay for the things that public benefit programs do not pay for or do not provide for adequately. see more
The fact is, there are tools and techniques, perfectly legal and viable, that will allow your mother to, in essence, "set aside" funds for her own health, maintenance, and welfare and still be eligible for Medicaid benefits.
If you wait, and spend down her assets, you will be hard pressed to find the additional funds to pay for the things that public benefit programs do not pay for or do not provide for adequately. see more
Question
Mother plans on selling her home and using the money made to pay for an apartment I'm building for her next to...
I should also add that, if the apartment is a separate residence available for purchase, she could purchase the apartment from you and deem... I should also add that, if the apartment is a separate residence available for purchase, she could purchase the apartment from you and deem it her primary or "homestead" residence.
As such, it would be an exempt asset for Medicaid eligibility purposes. If she then had to leave the property for care it could maintain exempt status if it is then rented and net income goes to her cost of care.
In this circumstance, the deed to the property should be structured as an "Enhanced Life Estate Deed" so as to avoid probate and possible Medicaid estate recovery. see more
As such, it would be an exempt asset for Medicaid eligibility purposes. If she then had to leave the property for care it could maintain exempt status if it is then rented and net income goes to her cost of care.
In this circumstance, the deed to the property should be structured as an "Enhanced Life Estate Deed" so as to avoid probate and possible Medicaid estate recovery. see more
Question
Mother plans on selling her home and using the money made to pay for an apartment I'm building for her next to...
You have a unique planning opportunity which I will attempt to succinctly convey here. Mother can create what is known as a "life... You have a unique planning opportunity which I will attempt to succinctly convey here.
Mother can create what is known as a "life estate" in your property with her funds. The agreement will give her the ability to live in the property for the "rest of her life". If she then lives in the property for at least two years, the money she transferred to you as the property owner will not be considered an uncompensated transfer for Medicaid eligibility purposes. This is a good thing. However, if she requires or applies for Medicaid before the two years has elapsed, the transfer will be considered uncompensated and a penalty period of ineligibility will be imposed.
Funds she has in addition to those that will be used for the property should be handled so as permit her to have access to them while receiving benefits. Once you are contemplating public benefit application consider tools such as the Personal Services Contract or Supplemental Needs Trust for "over-resourced" amounts. see more
Mother can create what is known as a "life estate" in your property with her funds. The agreement will give her the ability to live in the property for the "rest of her life". If she then lives in the property for at least two years, the money she transferred to you as the property owner will not be considered an uncompensated transfer for Medicaid eligibility purposes. This is a good thing. However, if she requires or applies for Medicaid before the two years has elapsed, the transfer will be considered uncompensated and a penalty period of ineligibility will be imposed.
Funds she has in addition to those that will be used for the property should be handled so as permit her to have access to them while receiving benefits. Once you are contemplating public benefit application consider tools such as the Personal Services Contract or Supplemental Needs Trust for "over-resourced" amounts. see more
Short-term care covered by Medicare has ended and Medicaid hasn't been approved, but my father still needs Ski...